The Hindu Business Line : NTPC, ADB sign joint venture deal for green power foray

New Delhi, July 26 NTPC Ltd has signed a memorandum of understanding with the Manila-based Asian Development Bank (ADB) to set up a joint venture company for foraying into the renewable power generation.

NTPC and other government entities will hold up to 50 per cent in the joint venture, while other strategic investors will hold the rest. The ADB is expected to acquire 20 per cent later , NTPC said in a statement to the BSE.

Over the next three years, the joint venture company will hold a portfolio of about 500 MW of renewable power. To begin with, it will focus primarily on wind power and mini and micro hydroelectric power projects. It could also expand into solar, geothermal and bio fuel projects, it said.

According to official sources, NTPC has lined up plans to invest Rs 6,000 crore for setting up 1,000 MW of renewable energy capacity over the next ten years. The move could potentially transform the thermal major into the country’s largest green power producer in the coming years.

Wind energy capacity

The company plans to set up wind energy capacity of around 250 MW, starting with a 50 MW project. It is likely to go in for onshore wind power projects in the first phase andoffshore wind farms later , the officials added. The country’s western and southern coastlines are considered ideal for setting wind farms and NTPC is evaluating possible locations for the first project. NTPC has also been eyeing 30-50 MW from geothermal power projects and 35 MW from small biomass and solar sources.

Its total capacity of 27,000 MW is generated from coal and gas.